E.ON backs new €110m fund for digitalisation of the energy transition

The new fund under management by Future Energy Ventures is targeting €250 million ($271 million).

Alongside E.ON, the European Investment Fund (EIF) also is an anchor investor with both holding a mid-double-digit million euro stake, according to a release.

The capital of the fund is allocated entirely towards investments across three core themes with clear decarbonisation potential – future energy, future cities and future technologies.

With an average initial ticket size of between €1-10 million for early-stage investments in start-ups and scale-ups, it aims to target 30 new investments to develop and implement digital solutions to drive the energy transition in innovation hubs of Europe, North America and the Middle East.

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“This is a milestone for E.ON on our way to making the new world of energy work. Having access to climate tech and the resulting digital solutions is a central cornerstone of our innovation initiatives through which we continuously integrate new technologies and startup solutions into the E.ON business,” says Thomas Birr, Chief Strategy and Innovation Officer at E.ON.

“The newly established fund which is open for external investors builds on our success of the existing venture portfolio and is the next important step for E.ON to broaden impact through collaboration.”

With the fund, E.ON anticipates further expanding its expertise in the field of innovation and through the innovation ecosystem, bring new partners on board.

Future Energy Ventures has been active in the energy tech ecosystem for E.ON and innogy since its formation in 2016 as an in-house investment advisor and subsequently transitioning to an independent venture capital company, and regards this new fund as “the next step on our journey”.

“The clean energy economy is the greatest business opportunity of our generation, and we are excited to be raising our second fund at this pivotal moment,” says Jan Lozek, founder and Managing Partner.

“With FEV’s track record of portfolio successes, an extensive network of industry partners, our highly collaborative approach and deep sector focus, we are in a unique position to drive the digitisation and decarbonisation of the energy system.”

Some of the companies that have received support over the years include eSmart Systems, gridX, Bidgely, Enervee and Piclo.

The fund is expected to hold its final closing in the fourth quarter of 2024.